REACHING MILLENNIAL CONSUMERS: Using Financial Education as Content Marketing

Our mission at EverFi is to drive lasting, large-scale change to the fi nancial capability of learners of all ages.

We help banks and credit unions make a transformative impact on the livelihoods of their communities, consumers,

and employees through online education, data and services.

Steve Rice, Executive Vice President, EverFi

Steve has built a career around the union of technology, education, and fi nance.

His diverse background includes teaching and serving on school boards, working

for innovative technology companies like LivingSocial and AOL, and serving as a

tech consultant for Coca-Cola. At EverFi, he combines his savvy tech skills with his

experience as an educator to generate fi nancial literacy for learners of all ages.

srice@everfi .com

About the Authors

About EverFi

Learn More About EverFi and Using Financial Education as Content Marketing at

EverFi.com/FinancialEd

3

Financial Literacy: A Need and a Benefi tThe Need for Financial EducationAs the growth of online and mobile banking diverts consumers away from traditional face-to-face interactions with bankers at their local fi nancial institutions,1 the need for fi nancial literacy grows. And this gap is something that consumers are aware of. Between 2006 and 2013, the percentage of respondents in an Allianz study who reported wanting more education surrounding investing and fi nancial decisions rose from 35 percent to 65 percent. Further, two-thirds of respondents say they have unmet fi nancial education needs, but 68 percent avoid fi nancial literacy programs because the educational materials they’ve seen fail to hold their attention. Bottom line? The need is present, but the solutions are falling short.

The Benefi t of Financial Literacy to the Financial InstitutionRegardless of what industry you’re in or what you’re selling—free checking, investment services, lawn care, or laptops—only about 3 percent of people are generally ready and willing to buy at any given time. Another 7 percent might be somewhat open to what you’re offering, but the remaining 90 percent just aren’t interested in a pitch or a purchase of any kind.2

In this challenging environment, educating prospects and account holders sets you apart from the competition, positioning you as a trusted advisor. When the time is right—and it eventually will be—research shows that your prospects will be ready to act on everything you’ve taught them. A 2014 FICO survey found a strong correlation between fi nancial literacy and customer engagement, including more use of bank services and greater loyalty to fi nancial institutions.3 Even better, educated banking customers become advocates for their banks. According to recent research by Powered, Inc, customers who purchase banking services due to online education are 93 percent more likely to tell their friends about the experience4—turning customers into salespeople at no additional cost.

Between 2006 and 2013, the percentage of respondents in an Allianz study who reported wanting more education surrounding investing and fi nancial decisions rose from 35 percent to 65 percent.

Financial Institutions (FIs) need new account holders to survive and grow, while the

communities they serve—particularly young adults—need a better understanding of investment

and fi nance. With the right tools, these two critical needs can be addressed simultaneously—

providing the next generation of account holders a leg up, and future-minded FIs opportunities

for engagement and growth.

1. LaPonsie, Maryalene. (2016, January 7). 10 Banking Trends for 2016. Retrieved from http://money.usnews.com/money/personal-fi nance/articles/2016-01-07/10-banking-trends-for-2016

2. Kincade, S. (2015, September 14). Stop Selling and Start Educating. Retrieved from http://aspirekc.com/stop-sell-ing-and-start-educating/

3. Credit unions and fi nancial literacy. (2014, October 16). Retrieved from http://www.rexcuadvice.com/blog/cred-it-unions-and-fi nancial-literacy

4. Credit unions and fi nancial literacy. (2014, October 16). Retrieved from http://www.rexcuadvice.com/blog/cred-it-unions-and-fi nancial-literacy

$

4

Quick, to-the-point lessons are crucial for reaching multitasking millennials, as well as their busy parents.

Connecting with MillennialsIn the previous sections, we laid out the reasons why financial education is important for both financial institutions and the communities they serve. But how to bridge this gap—particularly within the large millennial demographic that scores lowest on financial literacy tests and rarely seeks professional financial advice—but who also save more money than Gen Xers or Baby Boomers?5 The answer is technology.

Financial Institutions must meet this demographic on its own turf by embracing the online and mobile technology that millennials have woven throughout their lifestyles, with tools tailored to fit their financial needs, technology expectations, and lifestyles. FIs that truly grasp this concept will find multiple opportunities to acquire and build loyalty with millennial clients, as well as cross-selling them on relevant products and services. Below are five points to address as you develop a financial education solution for your organization.

5 Ways to Connect with Millennials through Financial Education:

Make it short. Period.Technology and mobile devices have changed the way we digest information: the average YouTube view is 9 seconds, while a tweet is limited to 140 characters. Today, few of us have the time or desire to listen to long lectures or to digest massive amounts of information. Quick, to-the-point lessons are crucial for reaching multitasking millennials, as well as their busy parents.

Make it just-in-time.To be effective, financial education must meet a current need and must be available at the appropriate milestones. Your account holders don’t need to know about saving for college right after they’ve graduated, or about buying a house when they’re nineteen. Educational content must be available to your members and their families as they make relevant life decisions.

Make it mobile.Today, much of our down-time is spent on mobile devices. It might be hard to find time to hunker down at a laptop for a financial lesson, but while riding to work or school, standing in line, or just while bouncing from app to app, mobile education is easier and more palatable to millennials who are accustomed to having the world at our fingertips.

Make it authentic.Millennials, with their strong support for local businesses and social causes, but their often-jaded attitudes towards traditional media and marketing, can be described as “cynical do-gooders.” They value authentic relationships, and once they choose a brand, they tend to be loyal and enthusiastic, recommending it to friends and even endorsing it on social media. The rewards for connecting meaningfully with them can be substantial—for your FI and for them.

Make it relevant. Educating your prospects provides an excellent opportunity to upsell related products and services—but there’s a fine line between helpful and pushy. To encourage marketing-savvy millennials to become your brand ambassadors, ensure that you upsell carefully, connecting them to products that are relevant to their interests and needs, and providing content that is informative rather than salesy.

1

2

3

4

5

5

By measuring the actions taken by users following courses, you can better target your financial literacy content to reach those participants most in need and most receptive to learning more.

Using Financial Education as Content MarketingUnlike traditional marketing, which tends to be promotional and sales-oriented, content marketing avoids the hard pitch and instead educates audiences with valuable, informative content that helps build credibility with their audience. An FI that educates its audiences will establish itself as a thought leader. But not just any content will do; to contribute to thought leadership, content must be relevant to its audience, address a need, and be of high quality.

Financial education fills every one of the content marketing criteria listed above, but it’s critical to be effective. FIs should find a provider that employs the best educators, researchers, and subject matter experts in the field—and understands the best ways to connect with your audience. Here’s what to look for when choosing a financial education partner:

� Research Curricula should be carefully planned to address specific challenges, trends, and learners. Does the provider consult experts, assess social need, and review national and state standards around potential materials?

� Design and Development All educational materials should be developed by the best and brightest educators, software engineers, and instructional designers, and tested for effectiveness—by subject matter experts, students, and teachers.

Interacting and Staying RelevantDevelopment is just the first step in connecting with and educating the next generation of financial services users. Content that addresses yesterday’s needs won’t contribute effectively to your marketing efforts. To keep learners engaged, the materials must stay relevant. To ensure relevancy and effectiveness, here’s what providers should be offering:

� Interactivity Interactivity increases learning and retention far beyond traditional “book learning.” Does the provider keep learners actively engaged by offering interactive learning tools? The financial education program should also reach beyond the lesson and into real-life scenarios—encouraging learners to engage more deeply in their financial health with their newfound knowledge.

� Evaluation & Data You’ve implemented an online financial education program—but is it working? And how do you know your provider is staying relevant as technology, needs, and attitudes change? Measuring is the only way to know for sure. Your provider should collect and share data around effectiveness and relevance through quizzes and surveys, listening labs, focus groups, and curriculum summits, helping you understand account holders’ behaviors and their overall financial health. By measuring the actions taken by users following courses, you can better target your financial literacy content to reach those participants most in need and most receptive to learning more.

One of the most powerful features of content marketing is that your prospects self-select as they engage with your educational materials. This is especially true for banks and credit unions that offer financial literacy programs, and the investment pays off down the road when younger students grow up and need to access financial services. The timing isn’t always right for audiences to reach out—but when they do reach out, you’ll already be established in their minds as a thought leader and trusted advisor.

6

With digital programming at their disposal, underbanked populations can achieve greater, larger-scale financial independence.

Conclusion: A Changing LandscapeOur communities—and particularly the younger members among them—learn and bank differently

than they did just a few short years ago. From ATMs to mobile deposits, technology has changed

how FIs and their account holders connect. FIs with no digital branch, or with a substandard

e-banking experience, can no longer compete—much less grow. And yet this same technology has

reduced attention spans and made it difficult to connect meaningfully. Without traditional face-to-

face interactions, how can FIs engage existing consumers and win over prospects?

The answer lies in that same technology. Personalized education experiences can manage the

tension between short attention spans and in-depth learning, as well as that between mere digital

interaction and meaningful connection.

Learn More About EverFi and Using Financial Education as Content Marketing at

EverFi.com/FinancialEd